(Yicai Global) March 3 -- BASF posted record high revenue in China last year, with over 20 percent coming from the car industry, the newly appointed president and chairman of BASF China said in a recent interview.

BASF raked in EUR12 billion (USD13.3 billion) in China last year, a 42.5 percent jump from 2020, Jeffrey Lou said on March 1.

“BASF has Chinese businesses in the manufacturing, automobile and chemical engineering sectors, but I am particularly optimistic about the auto sector, especially new energy vehicles,” Lou said. “Growth has been dazzling despite the global chip shortage.”

Global revenue was up 33 percent to EUR78.6 billion in 2021, with sales volume up 11 percent and prices increasing by 25 percent. This year the Ludwigshafen-based giant is aiming for revenue of up to EUR77 billion, after taking supply chain disruptions, the Covid-19 pandemic and rising energy prices into consideration.

BASF has partnerships with major EV battery makers in China, such as Contemporary Amperex Technology and SVOLT Energy Technology, Lou said. The firm's technologies can help raise the density of batteries to increase their range and it is offering special anode and fire-proof materials to make batteries safer. It is also looking at how to cut the cost of batteries by using cheaper metals.

Last August, BASF bought a majority stake in Hunan Shanshan Energy, a manufacturer of battery cathode materials, for CNY1.7 billion (USD264.5 million). The new company, BASF Shanshan Battery Materials, is expected to have an output of 90,000 tons this year.

Battery metals recycling is another area to watch as major metals such as lithium, nickel and cobalt that are used to make electric car batteries are in short supply, Lou said.

Although the demand for battery recycling is not strong at the moment, as NEVs account for less than 10 percent of global vehicle sales, recovering useful metals from batteries will be a main development direction over the next few years, especially in China, which is the world’s largest electric vehicle market, he said.

Chinese customers will represent a bigger proportion of BASF’s client base in years to come, and the rapid development of Chinese firms has greatly spurred the company’s growth, Lou added.

Editor: Kim Taylor